Giants rapid capture of market share in europe was on

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Giant's rapid capture of market share in Europe was on account of three major factors. Firstly, Giant broke into the EU with setting up a production plant and subsidiaries. Secondly, the mid 1980s saw the 1ever of mountain biking expanding from the [J.s. to the .EU. Giant capitalisedon this trend and launched its mountain bikes, 'thus g-aining an almost immediate market share. Thirdly, in 1993, the EU imposed 30.60/o antidumping MS-g 1
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duties on Chinese bicycles, which further spurred the growth of Giant in Europe. How ever, the establishment of the Single European Market (SEM) affected Giant's business in the EU. Under the umbrella of SEM, there are many advantages for the domestic players. These advantages include closeness to the market, getting better market information, stimulating demand, raising image and local identity, removing tariff, reducing transport costs, simplifying border formalities, reducing input costs, to name a few. To reap these advantages, Giant set up a wholly owned Holding Company in the Netherlands in 1986, which was soon followed by sales subsidiaries in GerrnanV, UK and France. These sales and marketing subsidiaries recruit local staff, familiar with the local marketsand fluent in the local language. These channels ofler after-sales service and help to deal with local commission agents and independent distributors. Between 1986 and Lgg7, Giant adopted an export strategy to enter the EU and focussed on expanding its salesto reach the mass production level and thereby reap the economies of scale. After achieving a steady growth in sales, Giant Europe Manufacturing Co. was set up in the Netherlands as a holding company in L995 and began manufacturing in 1997. Giant adopted a wholly owned Green-Field entry strategy into the SEM. This strategy helped Giant to P.T.O. I MS.g1
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source its production system from the parent company and match the fluctuations and uncertainty in the market demand. Giant Europe Mfg. currently produces more than 3,50,000 units annually and is based near the Rotterdam Seaport, which helps in rapid shipping of bicycle components distribution to Western European rnarket. In the LJ.S .... Constant reduction in orders by the [J.S. oDM customer (SCHWINN), led Giant to speed up promotion of its own brand in the LJ.S. market. It broke into the I.J.S. market by setting up wholly owned sales subsidiaries in L987. By I99L, Giant had gained 9.560/o market share, with more than 1,400 sales channels in the country. In China .... Giant penetrated into Chinese market in 1993 with sales subsidiaries and a wholly owned Green-Field venture in Kun Shan. To offset the risks in a planned econoffig, local culture, and local competition, Giant adopted a joint venture (scale-type and horizontal joint venture) with Chinese biggest bicycle manufacturer to produce low-priced bicycles. Giant leverages the knowl edgeof the local partner to better understand the political environment and the 'Guanxi' in doing local business thereby minimisingbusiness risks and gaining competitive MS-9 1
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advantage.
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